Prosperity and Fairness? Can New Labour Bring Fairness to the 21st Century by Following the Dictates of Endogenous Growth?
| DOI | 10.1111/j.1467-856X.2004.00135.x |
| Date | 01 May 2004 |
| Published date | 01 May 2004 |
| Author | David P. Dolowitz |
| Subject Matter | Original Article |
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Prosperity and Fairness? Can New
Labour Bring Fairness to the 21st
Century by Following the Dictates
of Endogenous Growth?
David P. Dolowitz
By the late 1980s changes in the British and global political, social and economic situation neces-
sitated a major rethink of the Labour party’s policy approach. This rethink began with the 1987
Policy Reviews and continues to develop under the leadership of Tony Blair and Gordon Brown.
In contrast to many critics of New Labour’s economic and social reforms this article argues that
the party is not acting on simple pragmatic grounds, nor are they simply a ‘kinder’ neo-liberal
party. Rather, it is argued that there is a clear coherence to New Labour’s governing approach and
that this is itself guided by the leadership’s understanding of endogenous growth theory. The long-
term goal is that by adopting an endogenous growth strategy the government will be able to re-
institute an activist policy regime capable of promoting the party’s traditional values of equality,
justice and fairness within a socioeconomic policy designed to ensure long-term growth and
prosperity.
In September 1994, Gordon Brown famously referred to the importance of post
neo-classical endogenous growth theory. Ridiculed by many, he has rarely made
mention of this theory again. However, the influence of endogenous growth theory
is manifest in Labour’s governing strategy. Specifically, by the late 1980s, social,
political and economic changes ‘necessitated’ major reforms to the Labour party’s
approach to economic and social policy. Much comment has been made in regard
to the changes the party’s policy has undergone under the leadership of Tony Blair
and Gordon Brown. In this vein, this article argues, that while Labour has adjusted
may of its policies it is not simply following the neo-liberal approaches adopted by
the Thatcher and Major governments; nor is it merely pursuing a pragmatic
approach to governing the nation.1Rather, it is argued that despite the short time,
frame within which many of Labour’s reforms have had to operate, there is a clear
coherence to the governments approach, an approach guided by the leadership’s
reading and understanding of the policy framework provided by models of endoge-
nous growth.2The core of the argument will be that, while in opposition, the indi-
viduals leading the party realised a need to adapt the party and its policies to the
realities of the political and economic situation of the late 1980s and early 1990s.
During this time they learned about and were open to the arguments presented in
endogenous growth theory, which unlike neo-liberal governing approaches,
requires an activist state engaged in the polity to enhance and unite economic and
social policy. Under the Blair leadership, Labour has attempted to do just this and
BJPIR: 2004 VOL 6, 213–230
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